ABSTRACT
There is a strong tendency for companies to bring a new venture to market using their existing business model or some variant of it. The digital age has spawned a Cambrian explosion of new business models, from hyper-targeted advertising, Direct-to-Consumer (D2C) businesses, and the shared economy to multi-sided platforms and predictive selling. The final step in bringing a new business model to market is to incubate it at a small scale in order to learn all those things that can only be learned in the market. The Business Model Pyramid provides a systematic way of developing and implementing a new business. Business model innovation is critical to capturing value from radical innovations. An assessment of ecosystem risks should be undertaken early. Incubation assures that the new business model is truly understood before it is brought to scale.
